METROPOLITAN STATE UNIVERSITY
A MEMBER OF THE
MINNESOTA STATE COLLEGES AND UNIVERSITIES SYSTEM
ANNUAL FINANCIAL REPORT
FOR THE YEARS ENDED JUNE 30, 2013 and 2012
Prepared by:
Metropolitan State University
2nd FL New Main
700 E. 7th St.
St. Paul, MN 55106-3000
Upon request, this publication is available in alternate formats by calling one of the following:
General number (651) 201-1800
Toll free: 1-888-667-2848
For TTY communication, contact Minnesota Relay Service at 7-1-1 or 1-800-627-3529.
METROPOLITAN STATE UNIVERSITY
ANNUAL FINANCIAL REPORT
FOR THE YEARS ENDED JUNE 30, 2013 and 2012
TABLE OF CONTENTS
INTRODUCTION
Page
Transmittal Letter ................................................................................................................................... 5
Organizational Chart ............................................................................................................................ 11
FINANCIAL SECTION
Independent Auditors’ Report .............................................................................................................. 14
Management’s Discussion and Analysis .............................................................................................. 16
Basic Financial Statements
Statements of Net Position ............................................................................................................ 24
Metropolitan State University Foundation – Statements of Financial Position ............................ 25
Statements of Revenues, Expenses, and Changes in Net Position ................................................ 26
Metropolitan State University Foundation – Statements of Activities .......................................... 27
Statements of Cash Flows ............................................................................................................. 28
Notes to the Financial Statements ................................................................................................. 30
REQUIRED SUPPLEMENTARY INFORMATION SECTION
Schedule of Funding Progress for Net Other Postemployment Benefits ............................................. 53
SUPPLEMENTARY SECTION
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards .................................................................. 56
1
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2
INTRODUCTION
3
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4
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10
The financial activity of the Metropolitan State University is included in this report. The University is one
of 31 colleges and universities included in the Minnesota State Colleges and Universities Annual Financial
Report which is issued separately.
The University’s portion of the Revenue Fund is also included in this report. The Revenue Fund
activity is included both in the Minnesota State Colleges and Universities Annual Financial Report and
in a separately issued Revenue Fund Annual Financial Report.
All financial activity of Minnesota State Colleges and Universities is included in the state of Minnesota
Comprehensive Annual Financial Report.
12
FINANCIAL SECTION
13
MANAGEMENT’S DISCUSSION AND ANALYSIS (Unaudited)
INTRODUCTION
The following discussion and analysis provides an overview of the financial position and activities of Metropolitan
State University for the fiscal years ended June 30, 2013 and 2012. This discussion has been prepared by
management and should be read in conjunction with the financial statements and accompanying notes, which follow
this section.
Metropolitan State University is a member of the Minnesota State Colleges and Universities (MnSCU) system, one
of two systems of public higher education in the state of Minnesota (the other is the University of Minnesota). The
Minnesota State Colleges and Universities system has 31 institutions with 54 campuses conveniently located in 47
Minnesota communities that serve more than 430,000 students. The law creating the system was passed by the
Minnesota Legislature in 1991 and went into effect July 1, 1995. The law merged the state's community colleges,
technical colleges and state universities into one system.
The Minnesota State Colleges and Universities system is governed by a 15 member Board of Trustees appointed by
the governor. Twelve trustees serve six-year terms, eight representing each of Minnesota’s congressional districts
and four serving at large. Three student trustees – one from a state university, one from a community college and
one from a technical college – serve two-year terms. The Board of Trustees selects the chancellor, vice chancellors,
and college and university presidents, and has broad policy responsibility for system planning, academic programs,
fiscal management, personnel, admissions requirements, tuition and fees, and policies and procedures.
The University is a comprehensive public institution of higher learning with over 11,000 students with an average
age of 32. Over 99 percent of the undergraduate degree-seeking students that matriculated in the 2012-2013
academic year were transfer students that attended between one and twelve institutions prior to enrolling at
Metropolitan State University. Approximately 90 percent of students work while attending school, most full time.
The University employs about 1,300 faculty and staff members, including approximately 550 part-time community
faculty who are often practitioners in the fields in which they teach.
The colleges and centers that comprise the University’s academic programs are as follows:
 College of Arts & Sciences
 College of Health, Community, and
Professional Studies
 College of Individualized Studies
 College of Management
 Library and Information Services
 School of Law Enforcement and Criminal Justice






School of Nursing
School of Urban Education
Center of Academic Excellence
Center of Excellence/Advance IT Minnesota
Center for Online Learning
Institute for Community Engagement & Scholarship
The University offers certificate programs; baccalaureate, masters and doctorate degrees, and the University
participates in the Minnesota Transfer Curriculum. The University is accredited by the Higher Learning
Commission. The largest program-based student majors are business, individualized programs, accounting,
psychology, criminal justice and human services. Our individualized program, which enables students to customize
degree requirements to fit their individual academic aspirations, is one of the unusual opportunities offered at
Metropolitan State University. The Urban Teacher Program, which was developed in collaboration with
Minneapolis Community and Technical College, Inver Hills Community College, and the Minneapolis and St. Paul
Public Schools, is a unique program designed to increase the number of teachers of color in urban schools.
16
The University’s Minneapolis campus is co-located with Minneapolis Community and Technical College. This
relationship continues to provide an exciting opportunity to collaborate with a partner school on programming to
benefit our combined student population, by providing a learning bridge for the students who are transitioning from
a two-year system to a four-year state university.
The University’s School of Law Enforcement and Criminal Justice is co-located in the Law Enforcement and
Criminal Justice Education Center on the Brooklyn Park campus of Hennepin Technical College. This facility
provides the unique environment needed for criminal justice and law enforcement training, including an on-campus
simulation center and forensics laboratory, and specialized SKILLS program.
During fiscal 2014, the University will seek academic partnerships with a number of two year community and
technical colleges to assist their existing students with a smooth transition to a four year institution. The partnership
will allow the two year students to continue their baccalaureate educational journey, while remaining at their current
two year college campus.
The University continues to partner with Saint Paul College and Minneapolis Community and Technical College in
“The Power of You” program. This is a program that makes the first two years of college possible by covering the
difference between tuition charges, and Pell and state grants, making tuition free. This funding is available to
individuals who have graduated from a public school in Minneapolis or Saint Paul beginning in 2007, are current
residents of either of these cities, and meet the criteria for limited income and first generation college students.
FINANCIAL HIGHLIGHTS
The University’s financial position remained strong during fiscal year 2013. Support from state appropriation
revenue increased by $0.2 million, and gross tuition revenue increased by $2.6 million due to an increase of 5
percent in tuition rates and enrollment increases of approximately 3 percent. Total net operating revenue increased
$1.9 million due to the tuition and enrollment increases, but was offset by $3.1 million increase in operating
expenses, primarily in compensation expenses.
For the fiscal years ended June 30, assets totaled $115.9 million and $78.1 million in fiscal years 2013 and 2012,
respectively, compared to liabilities of $56.1 million and $21.3 million, respectively. Net position, which represent
the residual interest in the University’s assets after liabilities are deducted, are comprised of $33.6 million and $33.5
million, respectively, in net investment in capital assets; $2.0 million and $1.6 million, respectively, in restricted net
position; and $24.2 million and $21.7 million, respectively, of unrestricted net position for fiscal years ended June
30, 2013 and 2012, respectively. The fiscal year 2013 increase in unrestricted net position represents an increase of
11.5 percent over the ending net position in fiscal year 2012, and 32.2 percent increase over unrestricted net position
as of June 30, 2011.
USING THE FINANCIAL STATEMENTS
The University’s financial report includes three financial statements: the statements of net position; the statements of
revenues, expenses and changes in net position; and the statements of cash flows. These financial statements are
prepared in accordance with applicable generally accepted accounting principles (GAAP) as established by the
Governmental Accounting Standards Board (GASB) through authoritative pronouncements. These GASB
statements establish standards for external financial reporting for public colleges and universities and require that
financial statements be presented on a consolidated basis to focus on the university as a whole, with resources
classified for accounting and reporting purposes into three net position categories. A summary of significant
accounting policies followed by the University is included in Note 1 to the financial statements.
17
STATEMENTS OF NET POSITION
The statements of net position present the financial position of the University at the end of the fiscal year and
include all assets and liabilities of the University as measured using the accrual basis of accounting. The difference
between total assets and total liabilities (net position) is one indicator of the current financial condition of the
University, while the change in net position is an indicator of whether the overall financial condition has improved
or worsened during the year. Capital assets are stated at historical cost less an allowance for depreciation, with
current year depreciation reflected as a period expense on the statement of revenues, expenses and changes in net
position. A summary of the University’s assets, liabilities and net position as of June 30, 2013, 2012 and 2011,
respectively, is as follows (in thousands):
Current assets
Restricted assets
Noncurrent assets
Total assets
Current liabilities
Noncurrent liabilities
Total liabilities
Net position
2013
$ 40,413
34,271
41,135
115,819
$
9,772
46,300
56,072
59,747
$
$
2012
36,521
101
41,478
78,100
8,909
12,417
21,326
56,774
$
$
2011
35,245
1,445
46,829
83,519
11,111
16,285
27,396
56,123
Current assets consist primarily of cash and cash equivalents totaling $36.1 million at June 30, 2013, an overall
increase of $3.2 million in unrestricted cash and cash equivalents over the prior year, and represents approximately
6.5 months of operating expenses (excluding depreciation). This is compared to 6.2 months and 6.2 months for the
fiscal years ended June 30, 2012 and 2011, respectively.
Restricted assets increased by $34.2 million during fiscal year 2013 due to the sale of Revenue Bonds for design and
construction of a parking ramp and a student center on the University’s Saint Paul campus.
Current liabilities consist primarily of salaries and benefits payable, unearned revenue, accounts payable, current
obligations for repayment of debt, and other compensation benefits. Salaries and benefits payable totaled $4.0
million at June 30, 2013, an increase of $0.9 million compared to fiscal year 2012. Approximately $0.5 million of
the increase was due to the timing of when the benefit payments due to third party providers were disbursed on July
1 of the current year versus the end of June in prior years. A second reason for the increase is due to retroactive pay
adjustments processed after June 30, 2013 for employment contract settlements approved in fiscal year 2013.
Salaries payable also includes $1.8 million representing approximately two months of earned salary for faculty on
nine month contracts who have elected to receive salaries over a twelve month period from August 2012 until
August 2013.
Noncurrent liabilities are composed primarily of the noncurrent portion of long-term debt, and other compensation
benefits. During fiscal year 2013, long-term debt increased primarily due to the $31.5 million for Revenue Bonds
sold for construction of a parking ramp and a student center on the Saint Paul campus, and $2.6 million for Revenue
Bond premium payable.
18
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
The Statement of Revenues, Expenses and Changes in Net Position present the University’s results of operations for
the year. When reviewing the full statements, users should note that GASB requires classification of state
appropriations as non-operating revenue. Summarized statements for the years ended June 30, 2013, 2012 and 2011,
respectively, follow (in thousands):
2013
Operating revenue:
Tuition, fees and sales, net
Restricted student payments
Other revenue
Total operating revenue
$
2012
2011
31,991 $
30,232 $
—
280
32,271
—
134
30,366
29,122
1,376
45
30,543
Nonoperating revenue:
State appropriations
Capital appropriations
Other
Total nonoperating revenue
Total revenue
20,758
926
18,786
40,470
72,741
20,524
702
17,729
38,955
69,321
21,650
3,797
17,444
42,891
73,434
Operating expense:
Salaries and benefits
Services and other expenses
Depreciation
Financial aid, net
Total operating expense
49,897
15,689
2,261
1,313
69,160
46,850
16,200
2,313
739
66,102
45,829
15,063
2,367
1,820
65,079
Nonoperating expense:
Interest expense
Other
Total nonoperating expense
Total expense
535
73
608
69,768
359
2,209
2,568
68,670
527
9,652
10,179
75,258
Change in net position
Net position, beginning of year
Net position, end of year
2,973
56,774
59,747 $
651
56,123
56,774 $
(1,824)
57,947
56,123
$
Tuition and state appropriations are the primary sources of funding for the University’s academic programs. The
University has experienced an increase in student enrollment by 179 full-year equivalent (FYE) students, which
represents approximately a 2.9 percent increase over fiscal year 2012. Enrollment levels totaled 6,266, 6,086, and
5,850 full year equivalent students for fiscal years ended June 30, 2013, 2012, and 2011, respectively. In addition to
the enrollment increases seen in each of those years, tuition revenue also increased as a result of tuition rate
increases in each of the last three fiscal years. Tuition rates increased 5.6 percent from fiscal year 2011 to fiscal year
2012, and 5.0 percent from fiscal year 2012 to fiscal year 2013. State appropriation revenue increased in fiscal year
2013 by $0.2 million to $20.8 million, representing a 1.1 percent increase over fiscal year ended June 30, 2012 and
4.1 percent decrease from the fiscal year ended June 30, 2011.
Capital appropriations have fluctuated over the past three fiscal years, with the University receiving $0.9 million,
$0.7, and $3.8 million for the fiscal years ended June 30, 2013, 2012 and 2011, respectively.
21
The University continues to face challenges in space allocation and usage for classrooms, faculty and staff offices.
the University is being considered to receive bond funding for a new Science Education Center. The projects are
currently number two on MnSCU’s funding priority for the upcoming 2014 legislative session. Decision for funding
will be determined by Legislature.
However, as the condition of the economy in Minnesota as well as other states improves, the University expects to
face some challenges with enrollment growth and management in the future. Enrollment has slowed, and it has been
growing at a lower rate of change than over the past years. The revised projections for the rate of growth for fiscal
years 2014 through 2016 are expected to be lower than prior estimates.
An ongoing challenge for the University will be staying financially accessible, given the shifts in funding sources
for public higher education in Minnesota. In the year 2000, the state of Minnesota paid about 65 percent of the cost
of education for the University students, with tuition and other revenue covering the other 35 percent. In fiscal year
2013, the University’s base appropriation declined to 29 percent of total revenue, compared to 30 percent and 31
percent for fiscal years 2012 and 2011, respectively, with tuition and other student-based revenue accounting for the
other 71 percent. The more reliant the University must be on tuition as its primary source of income, the more
difficult it will be to remain affordable. The financial projections for the state of Minnesota indicate a lower budget
deficit than anticipated in the past, but funding for higher education will remain in flux until there is funding
reprioritization at the Legislature.
During the fiscal year ended June 30, 2013, the University saw a significant increase in the percentage of students
eligible for and receiving federal and state financial aid. In fiscal year 2013, 70.9 percent of students were eligible
for financial aid programs, compared to 62.7 percent and 60.0 percent in the fiscal years ended June 30, 2012 and
2011, respectively. While the number of students eligible for financial aid rose significantly, the average amount of
financial aid awards remained almost constant over the prior year. In fiscal year 2013, the average financial aid
award was $8,859, compared to $8,870 and $8,363 in fiscal years 2012 and 2011, respectively. As the University
becomes more reliant on financial aid as a payment method for students, changes in federal and state legislation
regarding financial aid program funding could have a material effect on students’ ability to pay for higher education
and affect enrollment at the University.
The University anticipates challenges in the future with tuition rate growth. During the 2013 session, the Legislature
froze undergraduate tuition rates for the next two academic years. Additional appropriation was set aside for the
colleges and universities as an offset to lost tuition revenue due to the freeze, but the future impact of the tuition
freeze will extend beyond the next two years.
In summary, the University will face challenges in the upcoming 2015-2016 biennium and beyond as it attempts to
cope with enrollment growth and management, reduced state appropriations, potential changes in financial aid
funding, and restrictions on tuition rate increases.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of Metropolitan State University’s financial position
for all those with an interest in the University. Questions concerning any of the information provided in this report
or requests for additional financial information should be addressed to:
Chief Financial Officer/Vice President for Administrative Affairs
Metropolitan State University
700 East 7th Street
St. Paul, MN 55106-5000
23
METROPOLITAN STATE UNIVERSITY
STATEMENTS OF NET POSITION
AS OF JUNE 30, 2013 AND 2012
(IN THOUSANDS)
Assets
Current Assets
Cash and cash equivalents
Grants receivable
Accounts receivable, net
Prepaid expense
Other assets
Total current assets
Current Restricted Assets
Cash and cash equivalents
Total current restricted assets
Noncurrent Restricted Assets
Construction in progress
Total noncurrent restricted assets
Total restricted assets
Noncurrent Assets
Capital assets, net
Total noncurrent assets
2013
$
Total Assets
36,139
867
2,377
1,022
8
40,413
2012
$
32,916
950
1,635
1,013
7
36,521
33,748
33,748
101
101
523
523
34,271
101
41,135
41,135
41,478
41,478
115,819
78,100
Liabilities
Current Liabilities
Salaries and benefits payable
Accounts payable
Unearned revenue
Payable from restricted assets
Interest payable
Funds held for others
Current portion of long-term debt
Advances to other schools
Other compensation benefits
Total current liabilities
Noncurrent Liabilities
Noncurrent portion of long-term debt
Other compensation benefits
Total noncurrent liabilities
4,004
1,417
2,457
151
333
102
736
31
541
9,772
3,120
1,575
2,540
325
25
717
607
8,909
40,978
5,322
46,300
7,248
5,169
12,417
Total Liabilities
56,072
21,326
Net Position
Net investment in capital assets
Restricted expendable, bond covenants
Restricted expendable, other
Unrestricted
33,564
316
1,682
24,185
33,513
1,569
21,692
Total Net Position
$
The notes are an integral part of the financial statements.
24
59,747
$
56,774
METROPOLITAN STATE UNIVERSITY FOUNDATION
STATEMENTS OF FINANCIAL POSITION
AS OF JUNE 30, 2013 AND 2012
(IN THOUSANDS)
2013
Assets
Current Assets
Cash and cash equivalents
Investments
Pledges and contributions receivable, net
Other receivables
Total current assets
$
Noncurrent Assets
Investments held for endowment
Other assets held for endowment
Total noncurrent assets
$
Liabilities and Net Assets
Current Liabilities
Accounts payable
Scholarships payable
$
Net Assets
Unrestricted
Temporarily restricted
Permanently restricted
1,559
375
75
3
2,012
2,860
63
2,923
4,935
547
10
557
2012
$
$
$
356
1,578
2,444
4,378
Total Liabilities and Net Assets
$
The notes are an integral part of the financial statements.
25
4,935
1,368
588
74
3
2,033
2,736
130
2,866
4,899
49
82
131
330
2,009
2,429
4,768
$
4,899
METROPOLITAN STATE UNIVERSITY
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012
(IN THOUSANDS)
2013
Operating Revenues
Tuition, net
Fees, net
Sales, net
Other income
Total operating revenues
$
Operating Expenses
Salaries and benefits
Purchased services
Supplies
Repairs and maintenance
Depreciation
Financial aid, net
Other expense
Total operating expenses
Operating loss
Nonoperating Revenues (Expenses)
Appropriations
Federal grants
State grants
Private grants
Interest income
Interest expense
Grants to other organizations
Total nonoperating revenues (expenses)
Income Before Other Revenues, Expenses, Gains, or Losses
Capital appropriations
Transfer of assets
Donated assets and supplies
Loss on disposal of capital assets
Change in net position
Total Net Position, Beginning of Year
Total Net Position, End of Year
$
The notes are an integral part of the financial statements.
26
29,180
1,881
930
280
32,271
2012
$
27,452
1,867
913
134
30,366
49,897
9,504
2,182
1,150
2,261
1,313
2,853
69,160
(36,889)
46,850
8,669
2,533
1,406
2,313
739
3,592
66,102
(35,736)
20,758
13,412
3,969
1,189
216
(535)
(24)
38,985
20,524
13,061
2,931
1,194
198
(359)
(24)
37,525
2,096
1,789
926
(49)
2,973
702
(2,184)
345
(1)
651
56,774
59,747
$
56,123
56,774
METROPOLITAN STATE UNIVERSITY FOUNDATION
STATEMENTS OF ACTIVITIES
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012
(IN THOUSANDS)
Unrestricted
Support and Revenue
Contributions
Unrealized gains
Investment income (loss)
Net assets released from restrictions
Total support and revenue
$
804 $
13
51
989
1,857
Expenses
Program services
Program Services
Total program services
Supporting services
Management and general
Fundraising
Total supporting services
Total expenses
Change in Net Assets
Net Assets, End of Year
27
1,175 $
19
259
1,453
1,472
13
(70)
1,415
1,202
1,202
1,337
1,337
277
364
641
1,843
-
-
277
364
641
1,843
210
407
617
1,954
356 $
The notes are an integral part of the financial statements.
2012
Total
-
12
$
10 $
5
15
2013
Total
-
330
Net Asset Transfer Related to Application of UPMIFA
361 $
1
208
(989)
(419)
Permanently
Restricted
1,202
1,202
14
Net Assets, Beginning of Year
Temporarily
Restricted
(419)
2,009
(12)
1,578 $
15
(390)
(539)
2,429
4,768
5,307
-
-
-
2,444 $
4,378 $
4,768
METROPOLITAN STATE UNIVERSITY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012
(IN THOUSANDS)
2013
Cash Flows from Operating Activities
Cash received from customers
Cash paid to suppliers for goods or services
Cash payments for employees
Financial aid disbursements
Net cash flows used in operating activities
$
31,500
(15,871)
(48,925)
(1,313)
(34,609)
2012
$
29,717
(15,567)
(47,892)
(739)
(34,481)
Cash Flows from Noncapital Financing Activities
Appropriations
Federal grants
State grants
Private grants
Agency activity
Loans from other schools
Grants to other organizations
Net cash flows provided by noncapital financing activities
20,758
13,287
3,969
1,189
77
31
(24)
39,287
20,524
12,726
2,931
1,194
(38)
(24)
37,313
Cash Flows from Capital and Related Financing Activities
Investment in capital assets
Capital appropriation
Inter-capital transfer of restricted cash
Proceeds from sale of capital assets
Proceeds from borrowing
Proceeds from bond premium
Interest paid
Repayment of bond principal
Net cash flows provided by (used in) capital and related financing activities
(2,678)
926
164
5
31,916
2,786
(172)
(731)
32,216
(1,804)
479
(1,536)
1
431
51
(394)
(720)
(3,492)
Cash Flows from Investing Activities
Investment earnings
Net cash flows provided by (used in) investing activities
(24)
(24)
Net Increase (Decrease) in Cash and Cash Equivalents
36,870
Cash and Cash Equivalents, Beginning of Year
33,017
Cash and Cash Equivalents, End of Year
$
The notes are an integral part of the financial statements.
28
69,887
101
101
(559)
33,576
$
33,017
METROPOLITAN STATE UNIVERSITY
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012
(IN THOUSANDS)
2013
Operating Loss
$
Adjustment to Reconcile Operating Loss to
Net Cash Flows used in Operating Activities
Depreciation
Donated and leased equipment not capitalized
Change in assets and liabilities
Accounts receivable
Accounts payable
Salaries and benefits payable
Other compensation benefits
Unearned revenues
Other liabilities
Net reconciling items to be added to operating loss
Net cash flow used in operating activities
Non-Cash Investing, Capital, and Financing Activities
Capital projects on account
Amortization of bond premium
Capital assets net of related debt transfer
$
$
29
(36,889)
2012
$
(35,736)
2,261
-
2,313
345
(668)
(157)
884
88
(104)
(24)
2,280
(34,609)
(94)
278
(1,205)
163
(555)
10
1,255
(34,481)
151
239
-
$
$
343
98
(640)
METROPOLITAN STATE UNIVERSITY
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012
1.
SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES
Basis of Presentation — The reporting policies of Metropolitan State University, a member of the Minnesota
State Colleges and Universities system, conform to generally accepted accounting principles (GAAP) in the
United States as prescribed by the Governmental Accounting Standards Board (GASB). The statements of net
position; statements of revenues, expenses, and changes in net position; and statements of cash flows include
financial activities of Metropolitan State University.
Financial Reporting Entity — Minnesota State Colleges and Universities is an agency of the state of Minnesota
and receives appropriations from the state legislature, substantially all of which are used to fund general
operations. Metropolitan State University receives a portion of the Minnesota State Colleges and Universities’
appropriation. The operations of most student organizations are included in the reporting entity because the
Board of Trustees has certain fiduciary responsibilities for these resources.
Discretely presented component units are legally separate organizations that raise and hold economic resources
for the direct benefit of a college or university in accordance with GASB Statement No. 39, Determining
Whether Certain Organizations are Component Units. Metropolitan State University Foundation is considered
significant to the University and is included as a discretely presented component unit and separately identified
in Note 18. Complete financial statements may be obtained from Metropolitan State University Foundation,
700 East Seventh Street, St. Paul, MN 55106-5000.
Basis of Accounting — The basis of accounting refers to when revenues and expenses are recognized and
reported in the financial statements. The accompanying financial statements have been prepared as a special
purpose government entity engaged in business type activities. Business type activities are those that are
financed in whole or in part by fees charged to external parties for goods or services. Accordingly, these
financial statements have been presented using the economic resources measurement focus and the accrual basis
of accounting. Revenues are recognized when earned and expenses are recognized as they are incurred.
Eliminations have been made to minimize the double counting of internal activities. Interfund receivables and
payables have been eliminated in the statements of net position.
Budgetary Accounting — University budgetary accounting, which is the basis for annual budgets and the
allocation of state appropriations, differs from GAAP. University budgetary accounting includes all receipts
and expenses up to the close of the books in August for the budget fiscal year. Revenues not yet received by the
close of the books are not included. The criterion for recognizing expenses is the actual disbursement, not when
the goods or services are received.
The state of Minnesota operates on a two year (biennial) budget cycle ending on June 30 of odd numbered
years. Minnesota State Colleges and Universities is governed by a 15 member Board of Trustees appointed by
the Governor with the advice and consent of the state senate. The Board approves the University biennial
budget request and allocation as part of the Minnesota State Colleges and Universities’ total budget.
Budgetary control is maintained at the University. The University President has the authority and responsibility
to administer the budget and can transfer money between programs within the University without Board
approval. The budget of the University can be legally amended by the authority of the Vice Chancellor/Chief
Financial Officer.
The state appropriations do not lapse at year end. Any unexpended appropriation from the first year of a
biennium is available for the second year. Any unexpended balance may also carry over into future biennia.
30
Capital Appropriation Revenue — Minnesota State Colleges and Universities is responsible for paying
one third of the debt service for certain general obligation bonds sold for capital projects, as specified in the
authorizing legislation. The portion of general obligation bond debt service that is payable by the state of
Minnesota is recognized by Minnesota State Colleges and Universities as capital appropriation revenue when
the related expenses are incurred. Individual colleges and universities are allocated cash, capital appropriation
revenue, and debt based on capital project expenses.
Cash and Cash Equivalents — The cash balance represents cash in the state treasury and demand deposits in
local bank accounts as well as cash equivalents. Cash equivalents are short term, highly liquid investments
having original maturities (remaining time to maturity at acquisition) of three months or less. Cash and cash
equivalents include amounts in demand deposits, savings accounts, cash management pools, repurchase
agreements, and money market funds.
Restricted cash is cash held for capital projects. The Revenue Fund holds restricted cash for capital projects and
debt service. The Revenue Fund is used to account for the revenues, expenses, and net position of revenue
producing facilities. It has the authority to sell revenue bonds for the construction and maintenance of revenue
producing facilities.
All balances related to the state appropriation, tuition revenues, and most fees are in the state treasury. The
University has one checking account in a local bank. The activities handled through the local bank include
financial aid, student payroll, auxiliary operations, and student activities.
Investments — The Minnesota State Board of Investment invests the University’s balances in the state treasury,
except for the Revenue Fund, as part of a state investment pool. This asset is reported as a cash equivalent.
Interest income earned on pooled investments is allocated to the colleges and universities.
Cash in the Revenue Fund is invested separately. The Fund contracts with the Minnesota State Board of
Investment and U.S. Bank, N.A. for investment management services. Investments are reported at fair value.
Restricted investments are investments held in the Revenue Fund for capital projects and debt service.
Receivables — Receivables are shown net of an allowance for uncollectible accounts.
Prepaid Expense — Prepaid expense consists primarily of deposits in the state of Minnesota Debt Service Fund
for future general obligation bond payments.
Capital Assets — Capital assets are recorded at cost or, for donated assets, at fair value at the date of
acquisition. Estimated historical cost has been used when actual cost is not available. Such assets are
depreciated or amortized on a straight-line basis over the useful life of the assets.
Estimated useful lives are as follows:
Buildings
Building improvements
Equipment
Library collections
35-40 years
15-20 years
3-20 years
7 years
Equipment includes all items with an original cost of $10,000 and over for items purchased since July 1, 2008,
$5,000 and over for items purchased between July 1, 2003 and June 30, 2008, and $2,000 and over for items
purchased prior to July 1, 2003. Buildings, building improvements, and internally developed software include
all projects with a cost of $250,000 and over for projects started since July 1, 2008, and $100,000 and over for
projects started prior to July 1, 2008. All land and library collection purchases are capitalized regardless of
amount spent.
Funds Held for Others — Funds held for others are primarily assets held for students and student organizations.
31
Long Term Liabilities — The state of Minnesota appropriates for and sells general obligation bonds to support
construction and renovation of the Minnesota State Colleges and Universities’ facilities as approved through the
state’s capital budget process. The University is responsible for a portion of the debt service on the bonds sold
for some University projects. The University may also enter into capital lease agreements for certain capital
assets. Other long term liabilities include compensated absences, early termination benefits, net other
postemployment benefits, and workers’ compensation claims.
Minnesota State Colleges and Universities may finance the construction, renovation, and acquisition of facilities
for student residences, student unions, and parking facilities through the sale of revenue bonds. These activities
are accounted for and reported in the Revenue Fund included herein. Details on the Revenue Fund bonds are
available in the separately audited and issued Revenue Fund financial report. Copies are available from the
Financial Reporting System Director, Minnesota State Colleges and Universities, 30 7th St. E., Suite 350, St.
Paul, Minnesota 55101-7804
Unearned Revenue — Unearned revenue consists primarily of tuition received, but not yet earned, for summer
session. It also includes amounts received from grants which have not yet been earned under the terms of the
agreement.
Operating Activities — Operating activities as reported in the statements of revenues, expenses and changes in
net position are those that generally result from exchange transactions such as payments received for providing
services and payments made for services or goods received. Nearly all of the University’s expenses are from
exchange transactions. Certain significant revenue streams relied upon for operations are recorded as
nonoperating revenues, including state appropriations, federal, state and private grants, and investment income.
Tuition, Fees, and Sales, Net — Tuition, fees, and sales are reported net of scholarship allowances. The
University does not conduct retail sales. See Note 11 for additional information.
Federal Grants — The University participates in several federal grant programs. The largest programs include
Pell, TRIO, Supplemental Educational Opportunity Grant, and Federal Work Study. Federal Grant revenue is
recognized as nonoperating revenue in accordance with GASB Statement No. 33, Accounting and Financial
Reporting for Nonexchange Transactions. Expenditures under government contracts are subject to review by
the granting authority. To the extent, if any, that such a review reduces expenditures allowable under these
contracts, the University will record such disallowance at the time the determination is made.
Use of Estimates — To prepare the basic financial statements in conformity with generally accepted accounting
principles, management must make estimates and assumptions. These estimates and assumptions may affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities, at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. The most significant areas that require the use of management’s
estimates relate to allowances for uncollectible accounts, scholarship allowances, workers’ compensation claims
and compensated absences.
Net Position — The difference between assets and liabilities is net position. Net position are further classified
for accounting and reporting purposes into the following three net position categories:
• Net investment in capital assets: Capital assets, net of accumulated depreciation and outstanding principal
balances of debt attributable to the acquisition, construction or improvement of those assets.
• Restricted expendable: Net position subject to externally imposed stipulations. Net position restrictions
for the University are as follows:
Restricted for bond covenants — revenue bond restrictions.
Restricted for other — includes restrictions for the following:
Capital projects — restricted for completion of capital projects.
Debt service — legally restricted for bond repayments.
Donations — restricted per donor requests.
Faculty contract obligations — faculty development and travel required by contracts.
32
Net Position Restricted for Other
(In Thousands)
2013
2012
Capital projects
$
12 $
—
Debt service
956
969
Donations
247
34
Faculty contract obligations
467
566
Total
$ 1,682 $ 1,569
•
Unrestricted: Net position that is not subject to externally imposed stipulations. Unrestricted net
position may be designated for specific purposes by action of management, the System Office, or
the Board of Trustees.
New Accounting Pronouncements — The Minnesota State Colleges and Universities adopted GASB No. 60,
Accounting and Financial Reporting for Service Concession Arrangements, retroactive to July 1, 2011. This
statement requires that revenue be recognized in a systematic manner over the term of contracts when
applicable. There was no impact on the financial statements as a result of this adoption.
The Minnesota State Colleges and Universities adopted GASB No. 63, Financial Reporting of Deferred
Outflows of Resources, Deferred Inflows of Resources, and Net Position, retroactive to July 1, 2011. This
statement amends the net asset reporting requirements in Statement No. 34 by incorporating deferred outflows
of resources and deferred inflows of resources into the definitions of the required components of residual
measure and by renaming the measure as net position, rather than net assets. There was no impact on the
financial statements as a result of this adoption.
The Minnesota State Colleges and Universities adopted GASB No. 65, Items Previously Reported as Assets and
Liabilities. This statement requires certain items that were previously reported as assets and liabilities to be
reported as outflows of resources or inflows of resources in the year incurred or received. More specifically, the
statement requires costs related to the issuance of debt to no longer be recorded as a deferred charge and
amortized, but to be recognized as an expense in the period incurred. The fiscal year 2013 income statement
reflects $293,978 of expense related to current year bond issuance costs.
2.
CASH, CASH EQUIVALENTS AND INVESTMENTS
Cash and Cash Equivalents — All balances related to the appropriation, tuition, and most fees are in the state
treasury. In addition, the University has a checking account in a local bank. The activities handled through the
local bank include financial aid, student payroll, auxiliary, and student activities.
Minnesota Statutes, Section 118A.03, requires that deposits be secured by depository insurance or a
combination of depository insurance and collateral securities held in the state’s name by an agent of the state.
This statute further requires that such insurance and collateral shall be at least 10 percent greater than the
amount on deposit.
Cash and cash equivalents are categorized to give an indication of the level of custodial credit risk. Category 1
includes cash and cash equivalents insured or collateralized with securities held by the state or its agent in
Minnesota State Colleges and Universities’ name. Category 3 includes uncollateralized cash and cash
equivalents. All the University’s cash and cash equivalents are classified as Category 1.
At June 30, 2013 and 2012, the University’s bank balance was $2,397,260 and $2,518,358 respectively. These
bank balances were adjusted by items in transit to arrive at the University’s cash in bank balance.
The University’s balance in the treasury, except for the Revenue Fund, is invested by the Minnesota State Board
of Investment as part of the state investment pool. This asset is reported as a cash equivalent.
33
The following table summarizes cash and cash equivalents:
Year Ended June 30
(In Thousands)
Carrying Amount
Cash, in bank
$
Cash, trustee account (US Bank)
Total local cash and cash equivalents
Total treasury cash accounts
Grand Total
$
2013
2,129
33,450
35,579
34,308
69,887
2012
2,163
—
2,163
30,854
$ 33,017
$
The cash accounts are invested in short term, liquid, high quality debt securities.
Investments — The Minnesota State Board of Investment manages the majority of the state’s investments. All
investments managed by the State Board of Investment are governed by Minnesota Statutes, Chapters 11A and
356A. Minnesota Statutes, Section 11A.24 broadly restricts investments to obligations and stocks of United
States and Canadian governments, their agencies and registered corporations, other international securities,
short term obligations of specified high quality, restricted participation as a limited partner in venture capital,
real estate, or resource equity investments, and the restricted participation in registered mutual funds.
Generally, when applicable, the statutes limit investments to those rated within the top four quality rating
categories of a nationally recognized rating agency. The statutes further prescribe the maximum percentage of
fund assets that may be invested in various asset classes and contain specific restrictions to ensure the quality of
the investments.
Within statutory parameters, the Minnesota State Board of Investment has established investment guidelines
and benchmarks for all funds under its management. These investment guidelines and benchmarks are tailored
to the particular needs of each fund and specify investment objectives, risk tolerance, asset allocation,
investment management structure, and specific performance standards.
At June 30, 2013 and 2012, the University held no investments.
Custodial Credit Risk — Custodial credit risk for investments is the risk that in the event of a failure of the
counterparty, the University will not be able to recover the value of the investments that are in the possession of
an outside party. Board procedure 7.5.1 requires compliance with Minnesota Statutes, Section 118A.03 and
further excludes the use of FDIC insurance when meeting collateral requirements.
Credit Risk — Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its
obligations. The University’s policy for reducing its exposure to credit risk is to comply with Minnesota
Statutes, Section 118A.04. This statute limits investments to the top quality rating categories of a nationally
recognized rating agency.
Concentration of Credit Risk — Concentration of credit risk is the risk of loss attributed to the magnitude of a
government’s investment in a single issuer. The University’s policy for reducing this risk of loss is to comply
with Board procedure 7.5.1 which recommends investments be diversified by type and issuer.
Interest Rate Risk — Interest rate risk is the risk that changes in interest rates will adversely affect the fair value
of an investment. The University complies with Board procedure 7.5.1 that recommends considering
fluctuation interest rates and cash flow needs when purchasing short term and long term investments.
34
3.
ACCOUNTS RECEIVABLE
The accounts receivable balances are made up primarily of receivables from individuals. At June 30, 2013 and
2012, the total accounts receivable balances for the University were $3,678,035 and $2,604,238, respectively,
less an allowance for uncollectible receivables of $1,300,742 and $968,950, respectively.
Summary of Accounts Receivable at June 30
(In Thousands)
2013
2012
Tuition
$ 2,002 $ 1,351
Financial aid
313
393
Fees
206
146
Sales and services
144
38
Third party obligations
426
321
Other
587
355
Total accounts receivable
3,678
2,604
Allowance for uncollectible accounts
(1,301)
(969)
Net accounts receivable
$ 2,377 $ 1,635
The allowance for uncollectible accounts has been computed based on the following aging schedule for fiscal
years 2013 and 2012:
Age
Less than 1 year
1 to 3 years
3 to 5 years
Over 5 years
Allowance
Percentage
15
45
70
95
4. PREPAID EXPENSE
Prepaid expense consists primarily of funds which have been deposited in the state’s Debt Service Fund for
future general obligation bond payments in the amounts of $956,566 and $969,592 for fiscal years 2013 and
2012, respectively. Minnesota Statutes, Section 16A.641, requires all state agencies to have on hand on
December 1 of each year, an amount sufficient to pay all general obligation bond principal and interest due, and
to become due, through July 1 of the second fiscal year. Also, included in prepaid expense for fiscal years 2013
and 2012 was $65,657 and $43,526, respectively, stemming from prepaid software maintenance agreements and
prepaid contractual support.
35
5. CAPITAL ASSETS
Summaries of changes in capital assets for fiscal years 2013 and 2012 follow:
Year Ended June 30, 2013
(In Thousands)
Beginning
Balance
Increases Decreases
Capital assets, not depreciated:
Land
$
Construction in progress
Total capital assets, not depreciated
3,935 $
1,048
4,983
258 $
2,062
2,320
Completed
Construction
— $
177
177
— $
(462)
(462)
Ending
Balance
4,193
2,471
6,664
Capital assets, depreciated:
Buildings and improvements
Equipment
Library collections
Total capital assets, depreciated
55,329
2,381
1,422
59,132
—
200
162
362
—
389
241
630
462
—
—
462
55,791
2,192
1,343
59,326
Less accumulated depreciation:
Buildings and improvements
Equipment
Library collections
Total accumulated depreciation
20,088
1,681
868
22,637
1,910
159
192
2,261
—
325
241
566
—
—
—
—
21,998
1,515
819
24,332
Total capital assets depreciated, net
Total capital assets, net
$
36,495
41,478 $
(1,899)
421 $
Year Ended June 30, 2012
(In Thousands)
Beginning
Balance
Increases
Capital assets, not depreciated:
Land
$
Construction in progress
Total capital assets, not depreciated
3,935 $
78
4,013
— $
1,224
1,224
64
241 $
Decreases
— $
—
—
462
34,994
— $ 41,658
Completed
Construction
— $
(254)
(254)
Ending
Balance
3,935
1,048
4,983
Capital assets, depreciated:
Buildings and improvements
Equipment
Library collections
Total capital assets, depreciated
67,138
2,511
1,610
71,259
—
197
175
372
12,063
327
363
12,753
254
—
—
254
55,329
2,381
1,422
59,132
Less accumulated depreciation:
Buildings and improvements
Equipment
Library collections
Total accumulated depreciation
25,617
1,798
1,028
28,443
1,902
208
203
2,313
7,431
325
363
8,119
—
—
—
—
20,088
1,681
868
22,637
Total capital assets depreciated, net
Total capital assets, net
$
42,816
46,829 $
36
(1,941)
(717) $
4,634
4,634 $
254
36,495
— $ 41,478
6.
ACCOUNTS PAYABLE
Accounts payable represent amounts due at June 30, 2013 and 2012, for goods and services received prior to the
end of the fiscal year.
Summary of Accounts Payable at June 30
(In Thousands)
2013
2012
Purchased services
$ 817 $ 866
Interagency agreements
2
171
Capital assets
—
18
Supplies
65
201
Financial aid
122
—
Other payables
411
319
Total
$ 1,417 $ 1,575
In addition, as of June 30, 2013 and 2012, the University had payable from restricted assets in the amounts of
$151,266 and $324,568, respectively, which were related to capital projects financed by general obligation
bonds.
7.
LONG TERM OBLIGATIONS
Summaries of amounts that are due within one year are reported in the current liability section of the statements
of net position.
The changes in long term debt for fiscal years 2013 and 2012 are as follows:
Year Ended June 30, 2013
(In Thousands)
Beginning
Balance
Increases
Decreases
Liabilities for:
Bond premium
General obligation bonds
Revenue bonds
Total long-term debt
$
$
830
7,135
—
7,965
$
2,786
381
31,535
$ 34,702
$
$
239
714
—
953
Ending
Balance
$
3,377
6,802
31,535
$ 41,714
Year Ended June 30, 2012
(In Thousands)
Beginning
Balance
Increases
Decreases
Liabilities for:
Bond premium
General obligation bonds
Revenue bonds
Total long-term debt
$
877
7,467
3,984
$ 12,328
$
$
37
51
431
—
482
$
$
98
763
3,984
4,845
Current
Portion
$
$
Ending
Balance
$
$
830
7,135
—
7,965
—
736
—
736
Current
Portion
$
$
—
717
—
717
The changes in other compensation benefits for fiscal years 2013 and 2012 follow:
Year Ended June 30, 2013
(In Thousands)
Beginning
Balance
Increases
Liabilities for:
Compensated absences
Early termination benefits
Net other postemployment benefits
Workers’ compensation
Total other compensation benefits
$
$
4,403
4
1,121
248
5,776
$
$
556
—
297
19
872
Decreases
$
$
Year Ended June 30, 2012
(In Thousands)
Beginning
Balance
Increases
Liabilities for:
Compensated absences
Early termination benefits
Net other postemployment benefits
Workers’ compensation
Total other compensation benefits
$
$
4,315
—
889
409
5,613
$
$
563
4
369
40
976
491
4
67
223
785
Decreases
$
$
475
—
137
201
813
Ending
Balance
$ 4,468
—
1,351
44
$ 5,863
Current
Portion
$
$
Ending
Balance
$ 4,403
4
1,121
248
$ 5,776
520
—
—
21
541
Current
Portion
$
$
491
4
—
112
607
Bond Premium— Bonds were issued in fiscal years 2013 and 2012 resulting in premiums of $2,786,301 and
$50,625, respectively. Amortization is calculated using the straight-line method and amortized over the
remaining average life of the bonds.
General Obligation Bonds— The state of Minnesota sells general obligation bonds to finance most of
Minnesota State Colleges and Universities’ capital projects. The interest rate on these bonds ranges from
2.0 to 5.5 percent. Minnesota State Colleges and Universities is responsible for paying one third of the debt
service for certain general obligation bonds sold for capital projects, as specified in the authorizing legislation.
This debt obligation is allocated to the colleges and universities based upon the specific projects funded. The
general obligation bonds liability included in these financial statements represents the University’s share.
Revenue Bonds — The Revenue Fund is authorized by Minnesota Statutes, Section 136F.98 to issue revenue
bonds whose aggregate principal shall not exceed $405,000,000 at any time. The proceeds of these bonds are
used to finance the acquisition, construction and remodeling of buildings for dormitory, residence hall, food
service, student union, and other revenue producing and related facilities at the state universities. Revenue
funds currently outstanding have interest rates of 1.0 percent to 4.0 percent.
In fiscal year 2013 new bonds were issued totaling $31.5 million to fund design and construction of a parking
ramp and a student center on the Saint Paul campus.
Compensated Absences — University employees accrue vacation leave, sick leave, and compensatory leave at
various rates within limits specified in the collective bargaining agreements. The liability for compensated
absences is payable as severance pay under specific conditions. This leave is liquidated only at the time of
termination from state employment.
Early Termination Benefits — Early termination benefits are benefits received for discontinuing services earlier
than planned. See Note 8 for additional information.
38
Net Other Postemployment Benefits — Other postemployment benefits are health insurance benefits for certain
retired employees under a single employer fully insured plan. Under the health benefits program retirees are
required to pay 100 percent of the total premium cost. Since the premium is a blended rate determined on the
entire active and retiree population, the retirees are receiving an implicit rate subsidy. See Note 9 for further
details.
Workers’ Compensation — The state of Minnesota Department of Management and Budget manages the selfinsured workers’ compensation claims activities. The reported liability for workers’ compensation of $44,107
and $248,151 at June 30, 2013 and 2012, respectively, is based on claims filed for injuries to state employees
occurring prior to the fiscal year end and is an undiscounted estimate of future payments.
Principal and interest payment schedules are provided in the following table for general obligation and revenue
bonds. There are no payment schedules for compensated absences, early termination benefits, net other
postemployment benefits, or workers’ compensation.
Fiscal Years
2014
2015
2016
2017
2018
2019-2023
2024-2028
2029-2033
2034-2038
Total
8.
Long Term Debt Repayment Schedule
(In Thousands)
General
Obligation Bonds
Revenue Bonds
Principal Interest
Principal
Interest
$
736 $
325
$
— $ 1,236
676
281
—
1,141
644
248
—
1,141
585
216
1,305
1,118
585
187
1,345
1,070
2,290
564
7,580
4,556
853
170
8,810
2,972
433
30
10,290
1,156
—
—
2,205
33
$ 6,802 $ 2,021
$ 31,535 $ 14,423
EARLY TERMINATION BENEFITS
Early termination benefits are defined as benefits received for discontinuing services earlier than planned.
The Inter Faculty Organization (IFO) contract provides for this benefit. The following is a description of the
benefit arrangements, including number of retired faculty receiving the benefit, and the amount of future
liability as of the end of fiscal years 2013 and 2012.
Inter Faculty Organization (IFO) contract
The IFO contract allows faculty members who meet certain eligibility and combination of age and years of
service requirements to receive an early retirement incentive cash payment based on base salary at time of
separation, as well as an amount equal to the employer’s contribution for one year’s health insurance premiums
deposited in his/her health care savings plan at time of separation. The cash incentive can be paid either in one
or two payments.
There was no future liability in fiscal year 2013 and there was one retired faculty member who received $4,000
of future liability for fiscal year 2012.
39
9.
NET OTHER POSTEMPLOYMENT BENEFITS
The University provides health insurance benefits for certain retired employees under a single employer fully
insured plan, as required by Minnesota Statute 471.61 Subdivision 2B. Active employees who retire when
eligible to receive a retirement benefit from a Minnesota public pension plan and do not participate in any other
health benefits program providing coverage similar to that herein described, will be eligible to continue
coverage with respect to both themselves and their eligible dependent(s) under the health benefits program.
Retirees are required to pay 100 percent of the total premium cost. Since the premium is a blended rate
determined on the entire active and retiree population, the retirees are receiving an implicit rate subsidy. As of
July 1, 2012, there were approximately 4 retirees receiving health benefits from the health plan.
Annual OPEB Cost and Net OPEB Obligation — The annual other postemployment benefit (OPEB) cost
(expense) is calculated based on the annual required contribution (ARC) of the employer, an amount actuarially
determined in accordance with the parameters of GASB Statement No. 45, Accounting and Financial Reporting
by Employers for Post Employment Benefits Other Than Pensions. The ARC represents a level of funding that,
if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial
liabilities (or funding excess) over a period not to exceed 30 years.
The following table shows the components of the annual OPEB cost for fiscal years 2013 and 2012, the amount
actually contributed to the plan, and changes in the net OPEB obligation:
Components of the Annual OPEB Cost
(In Thousands)
2013
2012
Annual required contribution (ARC)
$ 289
$ 361
Interest on net OPEB obligation
53
42
Adjustment to ARC
(45)
(34)
Annual OPEB cost
297
369
Contributions during the year
(67)
(137)
Increase in net OPEB obligation
230
232
Net OPEB obligation, beginning of year
1,121
889
Net OPEB obligation, end of year
$ 1,351
$ 1,121
The University’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation for fiscal years 2013 and 2012 were as follows:
Year Ended June 30
(In Thousands)
Beginning of year net OPEB obligation
Annual OPEB cost
Employer contribution
End of year net OPEB obligation
Percentage contributed
40
$
$
2013
1,121
297
(67)
1,351
22.56%
$
$
2012
889
369
(137)
1,121
37.13%
Funding Status — There are currently no assets that have been irrevocably deposited in a trust for future health
benefits. Therefore, the actuarial value of assets is zero.
Actuarial
Valuation
Date
Actuarial
Value
of Assets
(a)
July 1, 2012 $
—
(In Thousands)
Actuarial
Unfunded
Accrued
Actuarial Accrued
Liability
Liability
(b)
(b - a)
$ 2,194
$
2,194
Funded
Covered
Ratio
Payroll
(a/b)
(c)
0.00% $ 36,430
UAAL as a
Percentage of
Covered Payroll
((b - a)/c)
6.02%
Actuarial Methods and Assumptions — Actuarial valuations involve estimates of the value of reported amounts
and assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and healthcare cost trends. Amounts determined regarding
the funded status of the plan and the annual required contributions of the employer are subject to continual
revision as actual results are compared with past expectations and new estimates are made about the future.
Projections of benefits for financial reporting purposes are based on the substantive plan (as understood by the
employer and the plan members) and include the types of benefits provided at the time of each valuation. The
actuarial methods and assumptions used include techniques that are designed to reduce the effects of short term
volatility in actuarial accrued liabilities, consistent with the long term perspective of the calculations.
In the July 1, 2012 actuarial valuation, the entry age normal actuarial cost method was used. The actuarial
assumptions included a 4.75 percent discount rate, which is based on the estimated long term investment yield
on the general assets, using an underlying long term inflation assumption of 3 percent. The annual healthcare
cost trend rate is 8.10 percent initially, reduced incrementally to an ultimate rate of 5 percent after seventeen
years. The unfunded actuarial accrued liability is being amortized as a level dollar amount over an open 30 year
period.
10. LEASE AGREEMENTS
Operating Leases — The University is committed under various leases primarily for building space. These
leases are considered for accounting purposes to be operating leases. Lease expenses totaled $1,241,806 and
$1,295,413 for fiscal years 2013 and 2012, respectively.
The University’s Minneapolis campus is co-located with Minneapolis Community and Technical College
(MCTC). The University has an agreement with MCTC to reimburse MCTC for a share of facilities expenses.
The University has an operating agreement with Hennepin Technical College (HTC) to lease space at the Law
Enforcement and Criminal Justice Education Center, located on the campus of HTC. The agreement allocates
operating expenses between the University and HTC based on square footage allocated to each institution. The
operating agreement is effective until July 1, 2015.
The University has extended the lease for current space at the Midway Campus through July 31, 2018. In
addition, the University entered into a new lease agreement effective August 1, 2013 through December 31,
2019 for increased leased space at the Midway Campus. Due to excess capacity in the Twin Cities’ current
office space market, the effect on total lease costs per annum is minimal.
41
Future minimum lease payments are as follows:
Year Ended June 30
(In Thousands)
Year
Amount
2014 $ 1,232
2015
1,287
2016
1,308
2017
1,252
2018
1,271
2019-2023
445
Total $ 6,795
Income Leases — The University has an income lease with the Saint Paul Public Library Dayton’s Bluff Branch
that commenced on July 1, 2004 and continues through June 30, 2014.
The University has an income lease with Verizon for a lease for cell phone tower located on campus. The
current lease commenced February 6, 2004 and continues through February 5, 2014. Future expected income
receipts for this lease includes a payment of $101,000 in fiscal year 2014.
11. TUITION, FEES, AND SALES, NET
The following tables provide information related to tuition, fees, and sales revenue:
Description
Tuition
Fees
Sales
Total
Gross
$ 43,085
2,158
930
$ 46,173
Year Ended June 30
(In Thousands)
2013
Scholarship
Allowance
Net
$ (13,905) $ 29,180
(277)
1,881
—
930
$ (14,182) $ 31,991
$
$
Gross
40,460
2,214
913
43,587
2012
Scholarship
Allowance
$ (13,008) $
(347)
—
$ (13,355) $
Net
27,452
1,867
913
30,232
12. OPERATING EXPENSES BY FUNCTIONAL CLASSIFICATION
The following tables provide information related to operating expenses by functional classification:
Year Ended June 30, 2013
(In Thousands)
Description
Academic support
Institutional support
Instruction
Public service
Research
Student services
Auxiliary enterprises
Scholarships & fellowships
Less interest expense
Total operating expenses
Salaries
11,387
5,398
17,087
34
206
4,370
28
—
—
$ 38,510
$
Benefits
3,714
1,656
4,392
10
81
1,208
326
—
—
$
11,387
$
42
$
$
Other
5,412
4,562
4,872
41
173
1,993
897
1,313
—
19,263
$
$
Interest
162
76
230
—
3
60
4
—
(535)
—
$
$
Total
20,675
11,692
26,581
85
463
7,631
1,255
1,313
(535)
69,160
Year Ended June 30, 2012
(In Thousands)
Description
Academic support
Institutional support
Instruction
Public service
Research
Student services
Auxiliary enterprises
Scholarships & fellowships
Less interest expense
Total operating expenses
Salaries
11,208
3,625
16,724
41
604
4,181
5
—
—
$ 36,388
$
Benefits
3,656
1,157
4,008
16
164
1,137
324
—
—
$
10,462
$
$
$
Other
4,341
5,880
4,759
33
284
1,498
1,718
739
—
19,252
$
$
Interest
113
37
159
—
6
41
3
—
(359)
—
$
$
Total
19,318
10,699
25,650
90
1,058
6,857
2,050
739
(359)
66,102
13. EMPLOYEE PENSION PLANS
The University participates in both mandatory and voluntary retirement plans. Mandatory plans include the
State Employees Retirement Fund, administered by the Minnesota State Retirement System; the Teachers
Retirement Fund, administered by the Teachers Retirement Association; and, the General Employees
Retirement Fund, administered by the Public Employees Retirement Association. Normal retirement age, for
employees covered by these defined benefit plans, range from age 62 to age 66, depending upon employment
date and years of service. Additionally, the University participates in a Defined Contribution Retirement Plan
which is available to faculty, system administrators and other unclassified employees.
State Employees Retirement Fund (SERF)
Pension fund information is provided by the Minnesota State Retirement System, which prepares and publishes
its own stand-alone comprehensive annual financial report, including financial statements and required
supplementary information. Copies of the report may be obtained directly from the Minnesota State
Retirement System at 60 Empire Drive, Suite 300, St. Paul, Minnesota 55103-3000.
The SERF is a cost sharing, multiple employer defined benefit plan. All classified employees are covered by
this plan. A classified employee is one who serves in a civil service position. The annuity formula is the
greater of a step rate with a flat rate reduction for each month of early retirement or a level rate (the higher step
rate) with an actuarial reduction for early retirement. The applicable rates for each year of allowable service
are 1.2 percent and 1.7 percent of the members’ average salary which is defined as the highest salary paid in
five successive years of service. The University, as an employer for some participants, is liable for a portion of
any unfunded accrued liability of this fund.
The statutory authority for SERF is Minnesota Statutes, Chapter 352. For fiscal years 2011, 2012, and 2013 the
funding requirement was 5 percent for both employer and employee. Actual contributions were 100 percent of
required contributions. Actual contributions were 100 percent of required contributions.
Required contributions for Metropolitan State University were:
(In Thousands)
Fiscal Year Amount
2013
$ 403
2012
382
2011
372
43
Teachers Retirement Fund (TRF)
Pension fund information is provided by the Minnesota Teachers Retirement Association, which prepares and
publishes its own stand-alone comprehensive annual financial report including financial statements and required
supplementary information. Copies of the report may be obtained directly from the Teachers Retirement
Association at 60 Empire Drive, Suite 400, St. Paul, Minnesota 55103-3000.
The Teachers Retirement Fund is a cost sharing, multiple employers, defined benefit plan. Teachers and other
related professionals may participate in TRF. Coordinated membership includes participants who are covered by
the Social Security Act. The annuity formula is the greater of a step rate with a flat reduction for each month of
early retirement, or a level rate (the higher step rate) with an actuarially based reduction for early retirement.
The applicable rates for coordinated members range from 1.2 percent and 1.7 percent for service rendered before
July 1, 2006, and 1.4 percent and 1.9 percent for service rendered on or after July 1, 2006. Minnesota State
Colleges and Universities, as an employer for some participants, is liable for a portion of any unfunded accrued
liability of this fund.
The statutory authority for TRF is Minnesota Statutes, Chapter 354. For fiscal year 2011 the funding
requirement was 5.5 percent for both employer and employee coordinated members. For fiscal year 2012 the
funding requirement was 6 percent for both employer and employee coordinated members. For fiscal year 2013
the funding requirement was 6.5 percent for both employer and employee coordinated members. Thereafter, a
contribution rate increase will be phased in with a 0.5 percent increase, occurring every July 1 over two years,
until it reaches a contribution rate of 7.5 percent on July 1, 2014. Actual contributions were 100 percent of
required contributions.
Required contributions for Metropolitan State University were:
(In Thousands)
Fiscal Year
Amount
2013
$ 328
2012
269
2011
241
Minnesota State Colleges and Universities Defined Contribution Retirement Fund
General Information — The Minnesota State Colleges and Universities Defined Contribution Retirement Fund
include two plans: an Individual Retirement Account Plan and a Supplemental Retirement Plan. Both plans are
mandatory, tax deferred, single employer, defined contribution plans authorized by Minnesota Statutes,
Chapters 354B and 354C. The plans are designed to provide retirement benefits to Minnesota State Colleges
and Universities unclassified employees. An unclassified employee is one who belongs to Minnesota State
Colleges and Universities specific bargaining units. The plans cover unclassified teachers, librarians,
administrators, and certain other staff. The plans are mandatory for qualified employees and vesting occurs
immediately.
The administrative agent of the two plans is Teachers Insurance and Annuity Association College Retirement
Equities Fund (TIAA-CREF). Separately issued financial statements can be obtained from TIAA-CREF,
Normandale Lake Office Park, 8000 Norman Center Drive, Suite 1100, Bloomington, MN 55437.
Individual Retirement Account Plan (IRAP)
Participation — Every employee who is in unclassified service is required to participate in TRF or IRAP upon
achieving eligibility. An unclassified employee is one who serves in a position deemed unclassified according
to Minnesota Statutes. This includes presidents, vice presidents, deans, administrative or service faculty,
teachers and other managers, and professionals in academic and academic support programs. Eligibility begins
with the employment contract for the first year of unclassified service in which the employee is hired for more
44
than 25 percent of a full academic year, excluding summer session. An employee remains a participant of the
plan even if employed for less than 25 percent of a full academic year in subsequent years.
Contributions — There are two member groups participating in the IRAP, a faculty group and an administrators
group. For both faculty and administrators, the employer and employee statutory contribution rates are
6 percent and 4.5 percent, respectively. The contributions are made under the authority of Minnesota Statutes,
Chapter 354B.
Required contributions for Metropolitan State University were:
Fiscal Year
2013
2012
2011
(In Thousands)
Employer
Employee
$ 1,318 $
984
1,260
940
1,168
873
Supplemental Retirement Plan (SRP)
Participation — Every unclassified employee who has completed two full time years of unclassified service
with Minnesota State Colleges and Universities must participate upon achieving eligibility. The eligible
employee is enrolled on the first day of the fiscal year following completion of two full time years. Vesting
occurs immediately and normal retirement age is 55.
Contributions — Participants contribute 5 percent of eligible compensation up to a defined maximum annual
contribution as specified in the following table.
Annual
Eligible
Maximum
Member Group
Compensation
Inter Faculty Organization
$ 6,000 to $ 51,000 $ 2,250
Minnesota State University Association of Administrative & Service Faculty 6,000 to 50,000
2,200
Administrators
6,000 to 60,000
2,700
Minnesota Association of Professional Employees Unclassified
6,000 to 40,000
1,700
Middle Management Association Unclassified
6,000 to 40,000
1,700
Other Unclassified Members
6,000 to 40,000
1,700
The University matches amounts equal to the contributions made by participants. The contributions are made
under the authority of Minnesota Statutes, Chapter 354C.
Required contributions for Metropolitan State University were:
(In Thousands)
Fiscal Year Amount
2013
$ 550
2012
547
2011
509
Voluntary Retirement Savings Plans
Minnesota State Colleges and Universities offers two voluntary programs to employees for retirement savings.
Minnesota Deferred Compensation Plan (MNDCP) is a voluntary retirement savings plan authorized under
section 457(b) of the Internal Revenue Code and Minnesota Statutes, Section 352.965. The plan is primarily
composed of employee pre-tax contributions and accumulated investment gains or losses. Participants may
withdraw funds upon termination of public service or in the event of an unforeseeable emergency. As of June
30, 2013, the plan had 132 participants.
45
In addition, to the state’s Deferred Compensation program, Minnesota State Colleges and Universities also
participates in a 403(b) Tax Sheltered Annuity (TSA) program. The plan consists of both pre-tax and after-tax
contributions and accumulated investment gains or losses. As of June 30, 2013, the plan had 108 participants.
14. SEGMENT INFORMATION
A segment is an identifiable activity reported as a stand-alone entity for which one or more revenue bonds are
outstanding. A segment has a specific identifiable revenue stream pledged in support of revenue bonds and has
related expenses, gains and losses, assets, and liabilities that are required by an external party to be accounted
for separately. Minnesota State Colleges and Universities issues revenue bonds to finance the University
parking ramp.
During fiscal year 2013, Minnesota State Colleges and Universities sold revenue bonds totaling $31.5 million to
fund design and construction of a parking ramp and a student center on the Saint Paul campus.
Metropolitan State University Portion of the Revenue Fund
(In Thousands)
2013
2012
CONDENSED STATEMENTS OF NET POSITION
Assets
Current assets
$
650 $
—
Restricted assets
33,748
—
Noncurrent assets
523
—
Total assets
34,921
—
Liabilities
Current liabilities
416
—
Noncurrent liabilities
34,143
—
Total liabilities
34,559
—
Net Position
Net investment in capital assets
—
—
Restricted
362
—
Total net position
$
362 $
—
CONDENSED STATEMENTS OF REVENUES,
EXPENSES, AND CHANGES IN NET POSITION
Operating revenues
$
Operating expenses
Net operating income
Nonoperating revenues (expenses)
Capital contributions
Change in net position
Net position, beginning of year
Net position, end of year
$
22 $
—
(334)
—
(312)
—
(192)
(2,184)
866
—
362
(2,184)
—
2,184
362 $
—
CONDENSED STATEMENTS OF CASH FLOWS
Net cash provided (used) by
Operating activities
$
551 $
—
Investing activities
(135)
—
Capital and related financing activities
33,979
(1,618)
Net increase (decrease) in cash
34,395
(1,618)
Cash, beginning of year
—
1,618
Cash, end of year
$ 34,395 $
—
46
15. RELATED PARTY TRANSACTIONS
The University’s Minneapolis campus is co-located with Minneapolis Community and Technical College
(MCTC) and shares physical plant and institutional and academic support. The University and MCTC have an
agreement to share costs using relevant cost bases. This agreement articulates a cost allocation methodology
which ensures that equitable and complete costs are absorbed by both schools. In fiscal years 2013 and 2012,
the University’s shared cost expense was $425,294 and $437,312, respectively. The University had no shared
costs payable to MCTC at June 30, 2013 and 2012, respectively.
The University leases space from Hennepin Technical College (HTC) in the Law Enforcement and Criminal
Justice Education Center, a partnership between the University, MCTC, and HTC. As of July 1, 2010,
ownership of the building was transferred to HTC, and the University and HTC executed an operating
agreement to share costs based on each institution’s share of the usable square footage of the building. Shared
costs were $176,281 and $216,347 for fiscal years 2013 and 2012, respectively. The University recorded
$338,818 in shared costs payable to HTC at June 30, 2013. The University also recorded shared costs
receivable from HTC of $102,074 and $93,062 at June 30, 2013 and 2012 respectively, for reimbursable
information technology services.
On July 1, 2011 the University executed an agreement with MCTC to transfer ownership of the Minneapolis
parking ramp, a revenue bond funded project, to MCTC. The ownership transferred capital assets of $12.1
million less accumulated depreciation of $7.4 million, nonoperating cash of $1.5 million, and short and long
term debt of $4.0 million, to MCTC from the University. This net change of $2.2 million is shown as a transfer
of assets on the fiscal year 2012 financial statements.
16. COMMITMENTS AND CONTINGENCIES
In fiscal year 2011, the University received bond funds for design of the Science Education Center on the St.
Paul campus. Total cost of the project is $3.4 million, of which $1,721,525 had been spent as of June 30, 2013.
Residual commitments to the University total $1,722,475.
During fiscal year 2013, the University received revenue bond funds for the construction of a Parking Ramp and
a Student Center on the St. Paul campus. Total cost of the Parking Ramp project is $18.9 million, of which
$398,298 had been expended with residual commitments of $18,486,702 at June 30, 2013. Total cost of the
Student Center project is $12.7 million, of which $124,284 had been expended with residual commitments of
$12,252,716 at June 30, 2013.
17. RISK MANAGEMENT
Minnesota State Colleges and Universities is exposed to various risks of loss related to tort; theft of, damage to,
or destruction of assets; error or omissions; and employer obligations. Minnesota State Colleges and
Universities manages these risks through state of Minnesota insurance plans including the state of Minnesota
Risk Management Fund, a self-insurance fund, and through purchased insurance coverage.
Automobile liability coverage is required by the state and is provided by the Minnesota Risk Management
Fund. The University also purchases optional physical damage coverage for their newest or most expensive
vehicles. Property coverage offered by the Minnesota Risk Management Fund is as follows:
47
Coverage
Amount
Institution deductible
Fund responsibility
Primary reinsurer coverage
Multiple reinsurers’ coverage
Bodily injury and property damage per person
Bodily injury and property damage per occurrence
Annual maximum paid by fund, excess by reinsurer
Maintenance deductible for additional claims
$25,000
Deductible to $1,000,000
$1,000,001 to $25,000,000
$25,000,001 to $1,000,000,000
$500,000
$1,500,000
$2,500,000
$25,000
The University retains the risk of loss and did not have any settlements in excess of coverage in the last three
years.
The Minnesota Risk Management Fund purchased student intern professional liability insurance on the open
market for the University.
Student intern professional liability per occurrence
Student intern professional liability annual aggregate
$1,000,000
$5,000,000
Minnesota State Colleges and Universities participates in the State Employee Group Insurance Plan, which
provides life insurance and hospital, medical, and dental benefits coverage through provider organizations.
Workers’ compensation is covered through state participation in the Workers’ Compensation Reinsurance
Association, which pays for catastrophic workers’ compensation claims. Other workers’ compensation risks are
covered through self-insurance for which Minnesota State Colleges and Universities pays the cost of claims
through the state Workers’ Compensation Fund. A Minnesota State Colleges and Universities workers’
compensation payment pool helps institutions manage the volatility of such claims. Annual premiums are
assessed by the pool based on salary dollars and claims history. From this pool all workers’ compensation
claims are paid to the state Workers’ Compensation Fund.
The following table presents changes in the balances of workers' compensation liability during the fiscal years
ended June 30, 2013 and 2012.
(In Thousands)
Fiscal Years Ended
June 30, 2013
June 30, 2012
Beginning
Liability
$ 248
409
Additions
$ 19
40
Payments
& Other
Reductions
$ 223
201
Ending
Liability
$ 44
248
18. COMPONENT UNITS
In accordance with GASB Statement No. 39, Determining Whether Certain Organizations Are Component
Units, the following foundation affiliated with Metropolitan State University is a legally separate, tax exempt
entity and reported as a component unit.
The Metropolitan State University Foundation is a separate legal entity formed for the purpose of obtaining and
disbursing funds for the sole benefit of the University. The University does not appoint any members of the
board and the resources held by the Foundation can only be used by, or for, the benefit of the University.
The Foundation’s relationship with the institution is such that exclusion of the Foundation’s financial statements
would cause the University financial statements to be misleading or incomplete. The Foundation is considered a
component unit of the University and its statements are discretely presented in the University’s financial
statements.
48
The Foundation’s financial statements have been prepared on the accrual basis of accounting in accordance with
generally accepted accounting principles as prescribed by the FASB Accounting Standards Codification (ASC)
958-205, Presentation of Financial Statements. Net assets, which are classified on the existence or absence of
donor imposed restrictions, are classified and reported according to the following classes:
•
•
•
Unrestricted Net Assets: Net assets that are not subject to donor imposed stipulations.
Temporarily Restricted Net Assets: Net assets subject to donor imposed restrictions as to how the
assets will be used.
Permanently Restricted Net Assets: Net assets subject to donor imposed stipulations that they be
maintained permanently by each foundation. Generally, the donors of these assets permit the
foundation to use all or part of the income earned on any related investments for general or
specific purposes.
The University received $303,342 and $253,775 in fiscal years 2013 and 2012, respectively, from the
Foundation for scholarships. In addition, the University received $583,650 and $457,355 for program support
for the fiscal years ended June 30, 2013 and 2012, respectively. The University pays the salaries and benefits of
certain individuals providing services to the Foundation. The estimated value of these salaries and benefits was
$512,000 and $471,000 for the fiscal years ended June 30, 2013 and 2012, respectively.
Investments —The Foundation’s investments are presented in accordance with FASB ASC 958-320,
Investments-Debt and Equity Securities. Under ASC 958-320, investments in marketable securities with readily
determinable fair values and all investments in debt securities are reported at their fair values in the statements
of financial position.
Schedule of Investments at June 30
(In Thousands)
2013
Money market & certificate of deposit
$
710
Fixed income/bonds/US treasuries
938
Balanced mutual funds
905
Equity based mutual funds
513
Alternative investments
169
Total investments
$
3,235
$
$
2012
420
977
1,200
568
159
3,324
Endowment Funds— The Foundation’s endowment includes both donor-restricted funds and funds designated
by the Foundation Board of Trustees to function as endowments. As required by generally accepted accounting
principles, net assets associated with endowment funds, including funds designated by the Board of Trustees to
function as endowments, are classified and reported based on the existence or absence of donor-imposed
restrictions.
49
Changes in endowment net assets as of June 30, 2013 are as follows:
Schedule of Endowment Net Assets
As of June 30, 2013
(In Thousands)
Net assets, beginning of year
Change in value of trusts
Amounts appropriated for expenditures
Other transfers
Net assets, end of year
Temporarily
Unrestricted
Restricted
$
(27) $
353
—
206
—
(106)
12
(12)
$
(15) $
441
Total
Permanently
Endowment
Restricted
Net Assets
$
2,429 $
2,755
15
221
—
(106)
—
—
$
2,444 $
2,870
Changes in endowment net assets as of June 30, 2012 are as follows:
Schedule of Endowment Net Assets
As of June 30, 2012
(In Thousands)
Net assets, beginning of year
Change in value of trusts
Amounts appropriated for expenditures
Other transfers
Net assets, end of year
Temporarily
Unrestricted
Restricted
$
(5) $
474
—
(79)
—
(64)
(22)
22
$
(27) $
353
50
Total
Permanently
Endowment
Restricted
Net Assets
$
2,410 $
2,879
20
(59)
—
(64)
(1)
(1)
$
2,429 $
2,755
REQUIRED SUPPLEMENTARY
INFORMATION SECTION
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METROPOLITAN STATE UNIVERSITY
SCHEDULE OF FUNDING PROGRESS FOR NET OTHER POSTEMPLOYMENT BENEFITS
Actuarial
Valuation
Date
July 1, 2006
July 1, 2008
July 1, 2010
July 1, 2012
Actuarial
Value of
Assets
(a)
$ —
—
—
—
Schedule of Funding Progress
(In Thousands)
Actuarial
Unfunded
Accrued
Actuarial Accrued Funded
Liability
Liability
Ratio
(b)
(b - a)
(a/b)
$ 3,245
$ 3,245
0.00%
2,323
2,323
0.00
2,709
2,709
0.00
2,194
2,194
0.00
53
Covered
Payroll
(c)
$ 29,010
29,905
35,364
36,430
UAAL as a
Percentage of
Covered Payroll
((b - a)/c)
11.19%
7.77
7.66
6.02
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SUPPLEMENTARY SECTION
55
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